Finance

Gross Rent Multiplier Calculator

Find the gross rent multiplier (GRM).

Calculated Output

Gross rent multiplier 10

Formula: GRM = price ÷ gross annual rent

Step-by-Step Breakdown

1. Values used:

2. Property price = 300,000 $

3. Gross annual rent = 30,000 $

5. Gross rent multiplier = Property price / Gross annual rent = 300,000 / 30,000 = 10

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The math behind it

GRM = price ÷ gross annual rent. Lower can mean better value.

$300,000 ÷ $30,000 → 10.

GRM vs cap rate?

GRM uses gross rent; cap rate uses net operating income.